“Negative Attitude” To Exports

Press, Volume CI, Issue 29893, 6 August 1962, Page 11

“Negative Attitude” To Exports

(N-Z. Press Association) WAIRAKEI, August 5. "1 oo many people have developed a negative attitude towards the possibility of New’ Zealand exporting manufactured goods and have put too much emphasis on high costs, our distance from potential markets and other difficulties,” said the Minister of Customs and associate Minister of Industries and Commerce (Mr Shelton) on Saturday.

He was ooemc-g the anrial cf the New Zealand Textile and Garment Manu'aeturers’ Federation at Wairakei. For a trial pericd of three years, said Mr Shelton, exporters wccid have to bear or.ly 5s in the £1 of their expert premetion costs Maru’soturir.g cculd make a vital expert ccn'ributirn if r w types cf goods could be off red in naw markets. ■‘Seme garment manufacturers have initiated important export developments in the last year or two.’’ said the Minister. “The d.ffieulties should not be minimised, of course, but r?vertht’e>s experience srews that New Zealand goods with a high cootent of skilled labour in relation to the certs of the material can be sold.” said the Minister. "We have exoortsd electrohic equipment, dry ice making equipment. earthmoving and oiher construction machinery, and crockery. as wtM as butter churns. m : lk pasteurisers, etc. “Seme of the'e gccds contain a high degree of technical skit! and seme are specialised products which are msde for markets demanding hish quality. "Provided that there are •pro.al qualities, it may be

style, novelty, status symbol. taste, efficiency, or simple operation, high costs of manufacture do not necessarily mean that New Zealand cannot sell overseas Questions for Exporters Exporters should ask themselves: Could the price to importers be reduced by channelling the products through fewer hands? Is it necessary to sell overseas at the same profit margin as on the domestic market? Has draw-back of duty been taken into account in assessing export price?

Failure to consider these questions might result in inflated prices that lest sales, said Mr Shelton. The Government had always supported all efforts to export and had issued import licences to approved manufacturers to cover the imported material content of their goods. “This procedure has now been modified on the recommendation of the Export Promotion Council and bonus licences will be issued to those who expert under this scheme." he said. Mr Shelton welcomed the setting up of the federation s expert committee as a sign

of determination to develop an export trade. The Government would do what it could to help, but the initiative to sell in new markets had to come from the industry and the individual manufacturer. The council had also made a number of other teccmSendations to the Governent. which were under consideration Mr Shelton described the Industrial Finance Corporation which will be set up as “most important.” ■‘Many small and mediumsiaed businesses have had difficulty obtaining capital for expansion. Industry has tended to use overdrafts for investment as well _as for working capital. The disadvantages are obvious. ‘‘The - Government hopes that finance will be channelled through the corporation to worth-while developments unrbte to find capita,' through normal institutions, said the Minister. New Zealand’s scarcest resource. foreign exchange, could be conserved by manufacturing in the Dominion, using either domestic or imported raw materials in the lowest possible state of processing By exporting. New Zealand manufacturers could earn desperately-needed exchange.